Applied our EQ8 scoring system for intelligent filtering of their site’s users for fraud
pattern analysis.

Scored advertising campaigns for a clear indication of bot traffic and capacity to reach
end customers.

The Results

Reduced their bot and hidden traffic rate from 36% down to 6%.

Lowered the numbers of chargebacks down to only one in the last 3 months.

Helped them reallocate revenue from two poorly performing ad campaigns so that more of the
budget was spent targeting real users.

Wudly.co had only been operating an online storefront for a couple of months, but with high chargeback
rates and a poorly performing ad campaign, malicious traffic was proving to be a big problem
for their business. They wanted to find an easy-to-install, easy-to-use fraud prevention
solution that would integrate quickly with their online platform and start saving them money
right away.

In order to make this goal a reality, their team needed to identify a major problem many modern businesses have to deal with
today. Last year, there was a grand total of over 15 million chargebacks, where customers
would demand their bank return their money thanks to a stolen credit card, a lost delivery,
or even a common case of buyer’s remorse. In total, this cost eCommerce merchants an estimated
$6 billion in lost revenue. While not all chargebacks are preventable, filtering a storefront’s
traffic is an important step to identify certain patterns and minimize fraudulent purchases.

Our chargeback rate was getting out of control, and on top of the revenue we were losing each
month, we were getting hit with hundreds dollars in fees. We were fairly new to all of
this, and these problems just seemed to come out of nowhere.

- James Cho, Co-Owner of Wudly.co

Wudly realized that by utilizing NS8’s Protect solution, they would be
able to filter all their site’s traffic and identify certain patterns that are commonplace
among fraudulent users. Firstly, the EQ8 scoring system helped to ensure a rapid quarantine
of suspicious orders, displaying any potential red flags in the product dashboard. For example,
if a customer was using a stolen credit card, indicators like a mismatched billing and shipping
address or other purchasing discrepancies might be a potential indicator for fraud. NS8 Protect gave them the ability to rapidly assess this order in manual review
and request SMS verification before the order was complete.

We installed [NS8 Protect], and we quickly saw that there was way
more to this problem than we realized. The dashboard showed that not only were losing
money to chargebacks and credit card fraud, but that our advertising was just being wasted
feeding bots instead of real customers.

- Jason Thomas, Co-Owner of Wudly.co

As well as protecting them from fraudulent traffic by reducing chargebacks, NS8 Protect gave them the ability to filter through their ad campaigns to ensure that revenue
was only being spent on reaching real customers. This not only enabled Wudly
to avoid remarketing to bots, but it also led to a big shift in focus for their ongoing marketing
campaigns thanks to better metrics on their real users.

Now whenever their business is paying money to display a pay-to-click ad, NS8 Protect
blocks bots from “viewing” the ads that they are paying to display. Scoring the ad campaigns
to assess if they’re simply subject to malicious traffic ensures that any problematic sources
can be easily filtered, and the combined savings of the measures meant that substantial revenue
can be re-allocated for more effective marketing in the future. All of this was possible
thanks to the seamless integration between NS8 Protect and their store’s
platform, giving them an instant view of site activity via the review dashboard.

With their help, we have also made a couple of simple changes to how we are purchasing our
ads. And we have reduced our bot and hidden traffic rate from 36% down to 6%. That is
money in our pockets.

- James Cho, Co-Owner of Wudly.co

These approaches have helped deliver some substantial results. By using NS8 Protect,
Wudly has reduced their bot and hidden traffic rate from 36% to 6%, which is a big improvement.
Over the last 3 months, they have also had only a single chargeback, which has led to substantial
gains in revenue after filtering out fraudulent users and other suspicious traffic.

With NS8 Protect scoring and filtering their ad campaigns, Wudly was also
able to boost their detection of fake traffic and adjust their advertising spend to avoid
remarketing to bots. Based on these outcomes, Wudly plans to continue utilizing NS8 Protect to actively monitor all their site’s users and further develop the
metrics we provide into a much more tailored approach for future marketing efforts.